CNG price reduced

JAKARTA (JP): State oil and gas company Pertamina has reduced the retail price of compressed natural gas (CNG) by 18 percent to Rp 450 (4.5 U.S. cents) per liter.

Soegianto, in a decree issued yesterday, said Pertamina would have a profit margin of Rp 6.5 per liter based on the new price, while CNG traders could have a profit margin of between Rp 165 and Rp 205 per liter.

CNG, considered an environmentally friendly fuel, is mostly used by taxis.

Pertamina earlier increased the CNG price by 100 percent to Rp 550 per liter, following the government's decision to hike fuel prices on May 5.

But the government lowered fuel prices last week following public outcry.

Soegianto said the new price was expected to increase people's interest in selling CNG. (jsk)